Philadelphia Energy Solutions Files For Bankruptcy Month After Massive Fire Leads To Closure
PHILADELPHIA (CBS) - Philadelphia Energy Solutions has filed for Chapter 11 bankruptcy a month after a massive explosion and fire forced the South Philadelphia oil refinery to permanently shut down. Under the proposed financing, the company would receive $100 million in new funding.
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PES says it will help them support existing operations, rebuild, restart and complete its reorganization process.
"Today's agreement provides PES Energy with the additional financing and liquidity necessary to ensure we can safely wind down our refining operations and, with the support of our insurers and stakeholders, best position the company for a successful reorganization, the rebuilding of our damaged infrastructure, and a restart of our refining operations. We will continue our ongoing cooperation with the federal, state and city governmental agencies investigating the June 21 accident and thank them and our employees for their diligent efforts at this difficult time. The success of our plan is critical to energy supply and security for the region, the Commonwealth of Pennsylvania and the City of Philadelphia," Mark Smith, chief executive officer of PES Energy, said.
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PES said the June fire had made it impossible for them to continue operations. The company then notified the state it was shutting down and laying off more than 1,000 workers.
"The company will work on a comprehensive resolution with its stakeholders and insurers in the weeks ahead with the goal of rebuilding the damaged facilities," Smith said.
The 150-year-old site, the largest oil refinery on the East Coast, had been processing 335,000 barrels of crude oil daily into gasoline, jet fuel, propane, home heating oil and other products.
